Home/Federal/Federal Register/2024-24780

Rule2024-24780

TWIC-Reader Requirements; Second Delay of Effective Date

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

October 31, 2024

Effective

December 2, 2024

Issuing agencies

Homeland Security DepartmentCoast Guard

Abstract

The Coast Guard is further delaying the effective date for certain facilities affected by the final rule entitled "Transportation Worker Identification Credential (TWIC)--Reader Requirements," published in the Federal Register on August 23, 2016. On March 9, 2020, the Coast Guard published a rule, delaying the implementation date to May 8, 2023. In December 2022, Congress statutorily extended the earliest implementation to no sooner than May 8, 2026. With this final rule, we are delaying the implementation date for certain facilities to May 8, 2029. This rule will not affect facilities receiving vessels certificated to carry more than 1,000 passengers.

Full Text

<html>
<head>
<title>Federal Register, Volume 89 Issue 211 (Thursday, October 31, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 211 (Thursday, October 31, 2024)]
[Rules and Regulations]
[Pages 86723-86739]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24780]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 105

[Docket No. USCG-2022-0052]
RIN 1625-AC80

TWIC--Reader Requirements; Second Delay of Effective Date

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard is further delaying the effective date for
certain facilities affected by the final rule entitled ``Transportation
Worker Identification Credential (TWIC)--Reader Requirements,''
published in the

[[Page 86724]]

Federal Register on August 23, 2016. On March 9, 2020, the Coast Guard
published a rule, delaying the implementation date to May 8, 2023. In
December 2022, Congress statutorily extended the earliest
implementation to no sooner than May 8, 2026. With this final rule, we
are delaying the implementation date for certain facilities to May 8,
2029. This rule will not affect facilities receiving vessels
certificated to carry more than 1,000 passengers.

DATES: This final rule is effective December 2, 2024.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to <a href="http://www.regulations.gov">www.regulations.gov</a>, type USCG-2022-0052
in the search box and click ``Search.'' Next, in the Document Type
column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document,
or for technical inquiries, call or email Lieutenant Commander Jeffrey
Bender, U.S. Coast Guard; telephone 202-372-1114, email
<a href="/cdn-cgi/l/email-protection#1e547b78786c7b673053305c7b707a7b6c5e6b6d7d7930737772"><span class="__cf_email__" data-cfemail="a4eec1c2c2d6c1dd8ae98ae6c1cac0c1d6e4d1d7c7c38ac9cdc8">[email&#160;protected]</span></a>. For general information and press inquiries,
contact Chief Warrant Officer Brittany Panetta, U.S. Coast Guard;
telephone 202-372-4449 email <a href="/cdn-cgi/l/email-protection#6e2c1c071a1a0f0017403e403e0f000b1a1a0f2e1b1d0d0940030702"><span class="__cf_email__" data-cfemail="b0f2c2d9c4c4d1dec99ee09ee0d1ded5c4c4d1f0c5c3d3d79eddd9dc">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis, Purpose, and Regulatory History
III. Background
IV. Discussion of Comments
V. Discussion of the Rule To Delay the Effective Date
VI. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment

I. Abbreviations

2006 NPRM ``Transportation Worker Identification Credential (TWIC)
Implementation in the Maritime Sector; Hazardous Materials
Endorsement for a Commercial Driver's License'' notice of proposed
rulemaking published May 22, 2006
2007 final rule ``Transportation Worker Identification Credential
(TWIC) Implementation in the Maritime Sector; Hazardous Materials
Endorsement for a Commercial Driver's License'' final rule published
January 25, 2007
2016 TWIC Reader final rule ``Transportation Worker Identification
Credential (TWIC)-Reader Requirements'' final rule published August
23, 2016
2020 TWIC Reader Delay final rule ``TWIC-Reader Requirements; Delay
of Effective Date'' final rule published March 9, 2020
2022 Second Reader Delay NPRM ``Transportation Worker Identification
Credential (TWIC)-Reader Requirements; Second Delay of Effective
Date'' notice of proposed rulemaking, published Dec. 6, 2022
2023 Authorization Act James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023
2023 Conforming Amendment ``Transportation Worker Identification
Credential--Facility Reader Requirement; Conforming Amendment''
final rule, conforming amendments published April 17, 2023
2023 TWIC Reader Delay rule ``TWIC--Reader Requirements; Second
Delay of Effective Date'' final rule published October 31, 2024.
ANPRM Advance notice of proposed rulemaking
BEA U.S. Bureau of Economic Analysis
BLS Bureau of Labor Statistics
CAP Corrective Action Plan
CDC Certain dangerous cargoes
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
GDP Gross Domestic Product
HSOAC Homeland Security Operational Analysis Center
MSRAM Maritime Security Risk Analysis Model
MTSA Maritime Transportation Security Act of 2002
NIPA National Income and Product Accounts
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
PIN Personal identification number
Pre-CA Pre-Conforming Amendment
RA Regulatory Analysis
SAFE Port Act Security and Accountability for Every Port Act of 2006
Sec. Section
TSA Transportation Security Administration
TSI Transportation security incident
TWIC Transportation Worker Identification Credential
U.S.C. United States Code

II. Basis, Purpose, and Regulatory History

Pursuant to the Maritime Transportation Security Act of 2002
(MTSA),\1\ and in accordance with the Security and Accountability for
Every Port Act of 2006 (SAFE Port Act),\2\ the electronic inspection of
Transportation Worker Identification Credentials (TWICs) is required
inside secure areas on certain vessels and facilities in the United
States. Specifically, the SAFE Port Act requires that the Secretary put
into effect regulations that require the deployment of electronic
transportation security card readers.\3\ To implement this requirement
in an effective manner, the Coast Guard initiated a series of
regulatory actions, updating its facility and vessel plan requirements
based on 46 U.S.C. 70103, to implement electronic TWIC inspections at
certain high-risk vessels and facilities regulated under MTSA.\4\
---------------------------------------------------------------------------

\1\ See Sec. 102 of Public Law 107-295 (November 25, 2002),
codified as 46 United States Code (U.S.C.) 70105.
\2\ See Sec. 104 of Public Law 109-347 (October 13, 2006).
\3\ See 46 U.S.C. 70105(k)(3).
\4\ See Sec. 102 of Public Law 107-295 (November 25, 2002)
(Maritime transportation security plans).
---------------------------------------------------------------------------

On May 22, 2006, the Coast Guard and the Transportation Security
Administration (TSA) jointly published a notice of proposed rulemaking
(NPRM) titled ``Transportation Worker Identification Credential (TWIC)
Implementation in the Maritime Sector; Hazardous Materials Endorsement
for a Commercial Driver's License'' (``2006 NPRM'').\5\ After
considering comments on the 2006 NPRM, the Coast Guard and TSA
published the final rule on January 25, 2007, also titled
``Transportation Worker Identification Credential (TWIC) Implementation
in the Maritime Sector; Hazardous Materials Endorsement for a
Commercial Driver's License'' (``2007 final rule'').\6\ The 2007 final
rule mandated that all persons allowed unescorted access to secure
areas in MTSA-regulated vessels and facilities were required to possess
a TWIC card. The rule did not mandate that a TWIC card be read with an
electronic reader. The card could be verified by visual inspection
alone, without making use of the electronic security features built
into the card.
---------------------------------------------------------------------------

\5\ 71 FR 29395.
\6\ 72 FR 3491.
---------------------------------------------------------------------------

Although the 2006 NPRM proposed certain TWIC reader requirements,
after reviewing the public comments, the Coast Guard and TSA decided
not to include those proposed requirements in the 2007 final rule.
Instead, we addressed them in a separate rulemaking, discussed below,
and conducted a pilot program to address the feasibility of reader
requirements before issuing another final rule. For a detailed
discussion of the public comments to the 2006 NPRM, and our responses
to them, please refer to the 2007 final rule.
On March 27, 2009, the Coast Guard published an advance notice of
proposed rulemaking (ANPRM) on the topic of TWIC reader requirements,
``Transportation Worker Identification

[[Page 86725]]

Credential (TWIC)-Reader Requirements.'' \7\ The ANPRM discussed
dividing vessels and facilities into three ``risk groups''--Risk Group
A for high-risk vessels and facilities, Risk Group B for medium-risk
vessels and facilities, and Risk Group C for low-risk vessels and
facilities. The ANPRM also considered different electronic inspection
requirements for Risk Groups A and B, and no electronic inspection
requirements for Risk Group C.
---------------------------------------------------------------------------

\7\ 74 FR 13360.
---------------------------------------------------------------------------

On March 22, 2013, we published an NPRM, ``Transportation Worker
Identification Credential (TWIC)-Reader Requirements'' \8\ that
proposed the three risk groups (A, B, and C), but limited the proposed
electronic TWIC inspection requirements to Risk Group A vessels and
facilities only.
---------------------------------------------------------------------------

\8\ 78 FR 17782.
---------------------------------------------------------------------------

On August 23, 2016, we published a final rule titled
``Transportation Worker Identification Credential (TWIC)--Reader
Requirements'' \9\ (``2016 TWIC Reader final rule'') that eliminated
the three risk group structure and required that high-risk vessels and
facilities (still referred to as Risk Group A) conduct electronic TWIC
inspections for all personnel seeking unescorted access to secure areas
of the vessel or facility. Risk Group A vessels and facilities are
defined in title 33 of the Code of Federal Regulations (CFR),
Sec. Sec. 104.263, 105.253, and 106.258.
---------------------------------------------------------------------------

\9\ 81 FR 57652).
---------------------------------------------------------------------------

Congress also passed several laws that impacted implementation of
the TWIC reader program. On December 16, 2016, the President signed the
bill titled ``Transportation Security Card Program Assessment.'' \10\
This law required the Secretary of the Department of Homeland Security
(DHS) to commission a report reviewing the security value of the TWIC
program by (1) evaluating the extent to which the TWIC program
addresses known or likely security risks in the maritime and port
environments; (2) evaluating the potential for a non-biometric
credential alternative; (3) identifying the technology, business
process, and operational impact of the TWIC card and readers in
maritime and port environments; (4) assessing the costs and benefits of
the TWIC program, as implemented; and (5) evaluating the extent to
which DHS has addressed the deficiencies of the TWIC program previously
identified by the Government Accountability Office and the DHS Office
of the Inspector General.
---------------------------------------------------------------------------

\10\ Public Law 114-278, 130 Stat. 1410.
---------------------------------------------------------------------------

On May 15, 2017, the Coast Guard received a petition for rulemaking
requesting that it revise the 2016 TWIC Reader final rule and impose
electronic TWIC inspection requirements on only those vessels and
facilities that engage in the maritime transfer of certain dangerous
cargoes (CDC).\11\
---------------------------------------------------------------------------

\11\ See docket number USCG-2017-0447, available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (last visited 04/28/2023).
---------------------------------------------------------------------------

On June 22, 2018, we published a second NPRM, ``TWIC-Reader
Requirements; Delay of Effective Date'',\12\ which proposed delaying
the implementation of the 2016 TWIC Reader final rule until August 23,
2021, for two categories of facilities: (1) facilities that handle CDC
in bulk, but do not transfer these cargoes from or to a vessel; and (2)
facilities that receive vessels carrying CDC in bulk, but do not,
during that vessel-to-facility interface, transfer these bulk cargoes
from or to those vessels.
---------------------------------------------------------------------------

\12\ 83 FR 29067.
---------------------------------------------------------------------------

On August 2, 2018, the President signed the ``Transportation Worker
Identification Credential Accountability Act of 2018,'' \13\ which
prohibited the Coast Guard from implementing the 2016 TWIC Reader final
rule until at least 60 days after the Coast Guard submits the report on
the security value of the TWIC program to Congress, as required by the
2016 bill, ``Transportation Security Card Program Assessment.'' \14\
---------------------------------------------------------------------------

\13\ See section 2 of Public Law 115-230, 132 Stat. 1631.
\14\ Public Law 114-278, 130 Stat. 1410. The report was
submitted in August 2019.
---------------------------------------------------------------------------

On March 9, 2020, the Coast Guard published a final rule titled
``TWIC-Reader Requirements; Delay of Effective Date'' \15\ (``2020 TWIC
Reader Delay final rule''). The 2020 TWIC Reader Delay final rule
extended the effective date of the 2016 TWIC Reader final rule, only
for Risk Group A facilities that handle CDC in bulk, until May 8,
2023.\16\ The implementation date for facilities designated as Risk
Group A, because they receive vessels certificated to carry more than
1,000 passengers, remained unchanged. The 2016 TWIC Reader final rule
was implemented on June 8, 2020. However, the Coast Guard delayed
enforcing this regulation until January 1, 2022, because of the global
COVID-19 pandemic.
---------------------------------------------------------------------------

\15\ 85 FR 13943.
\16\ While the NPRM proposed limiting the delay only to those
facilities that handle CDC in bulk, but do not transfer it from or
to a vessel, and facilities that receive vessels that carry bulk CDC
but do not transfer bulk CDC from or to the vessel, after
consideration of public comments, the 2020 TWIC Reader Delay final
rule delayed implementation for all facilities that handle bulk CDC
and facilities that receive vessels carrying CDC, including
facilities that transfer bulk CDC from or to a vessel.
---------------------------------------------------------------------------

In 2020, the Coast Guard commissioned the Homeland Security
Operational Analysis Center (HSOAC)--operated by the RAND Corporation--
to conduct an analysis. The purpose of the analysis was to (1) identify
the population of facilities handling CDC impacted by the 2016 TWIC
Reader final rule; (2) develop a risk-consequence analysis for these
facilities; and (3) conduct a benefit-cost analysis based on the
information collected and analyzed during this subsequent study. The
Coast Guard received the RAND Corporation's analysis on July 29, 2022,
and is currently evaluating the options for implementing the 2016 TWIC
Reader final rule. The 2022 RAND Corporation's analysis is included in
the docket. For instructions on locating the docket, see the ADDRESSES
section of this preamble.
While we evaluate the HSOAC analysis, the Coast Guard is continuing
to delay the original rule's implementation with this final rule to
avoid the 2016 TWIC Reader final rule going into effect. We are
delaying that rule's implementation for three categories of facilities:
(1) facilities that handle CDC in bulk but do not transfer those
cargoes from or to a vessel; (2) facilities that handle CDC in bulk and
do transfer those cargoes from or to a vessel; and (3) facilities that
receive vessels carrying CDC in bulk, but do not, during that vessel-
to-facility interface, transfer those bulk cargoes from or to those
vessels--to May 8, 2029, to avoid creating confusion and conflicts
between the 2016 TWIC Reader final rule's original requirements and the
potential outcomes of the study. The 2016 TWIC Reader final rule
remains in effect for facilities receiving vessels certificated to
carry more than 1,000 passengers. This final rule does not affect those
facilities.
On December 23, 2022, Congress enacted the James M. Inhofe National
Defense Authorization Act for Fiscal Year 2023 (``2023 Authorization
Act'').\17\ Section 11804 of the 2023 Authorization Act directs the
Secretary of Homeland Security to not implement TWIC reader regulations
for ``covered facilities'' before May 8, 2026. The 2023 Authorization
Act identifies covered facilities as facilities that (1) handle CDC in
bulk and transfer such cargoes from or to a vessel; (2) handle CDC in
bulk but do not transfer it from or to a vessel; and (3) receive
vessels carrying CDC in bulk but, during the vessel-to-facility
interface, do not transfer it from or to the vessel. These three
categories

[[Page 86726]]

are identical to the facilities identified in 33 CFR 105.253(a)(2)
through (4).
---------------------------------------------------------------------------

\17\ Public Law 117-263, 136 Stat. 2395.
---------------------------------------------------------------------------

Two weeks before the 2023 Authorization Act was enacted, the Coast
Guard published an NPRM titled ``Transportation Worker Identification
Credential (TWIC)-Reader Requirements; Second Delay of Effective
Date.'' (``2022 Second Reader Delay NPRM'') \18\ In it, we proposed to
change the implementation dates for the categories in Sec.
105.253(a)(2) through (4) to May 8, 2026, and requested comments on
whether we should extend the date as late as May 8, 2029.
---------------------------------------------------------------------------

\18\ 87 FR 74563 (Dec. 6, 2022).
---------------------------------------------------------------------------

On April 17, 2023, consistent with the 2023 Authorization Act, the
Coast Guard published the ``Transportation Worker Identification
Credential--Facility Reader Requirement; Conforming Amendment'' (``2023
Conforming Amendment''), which changed the implementation dates in 33
CFR 105.253(a)(2) through (4) from May 8, 2023, to May 8, 2026.\19\ The
2023 Conforming Amendment aligned Coast Guard regulations with the
Congressionally mandated minimum delay for implementation of TWIC
readers for the covered facilities.
---------------------------------------------------------------------------

\19\ 88 FR 23349.
---------------------------------------------------------------------------

III. Background

The 2016 TWIC Reader final rule established electronic TWIC reader
regulations for certain high-risk vessels and MTSA-regulated
facilities. Shortly after the 2016 TWIC Reader final rule was
published, the chemical industry expressed concern that the final rule
significantly expanded the scope of the 2013 NPRM for that rulemaking
\20\ and requested that the Coast Guard narrow the classes of chemical
facilities that would be subject to the enhanced security requirements.
An industry association representing terminal companies nationwide then
sued DHS in 2017, claiming that the 2016 TWIC Reader final rule
violated the Administrative Procedure Act.\21\ The court dismissed the
action, holding that the issue was not ripe for adjudication, because
Congress passed legislation delaying the implementation of the final
rule, and there was a likelihood that Congress or the Coast Guard might
amend or replace the regulation.\22\
---------------------------------------------------------------------------

\20\ 78 FR 17781.
\21\ Int'l Liquid Terminals Ass'n v. U.S. Dep't of Homeland
Sec., No. 1:18-cv-00467, 2018 WL 8667001, at *1 (E.D. Va., Sept. 17,
2018).
\22\ Id. at *2.
---------------------------------------------------------------------------

In June 2020, DHS published the Coast Guard's corrective action
plan (CAP) titled ``Corrective Action Plan from the Assessment of the
Risk Mitigation Value of the Transportation Worker Identification
Credential.'' \23\ The CAP identified the need to conduct a risk
analysis over the next 3 years to identify all facilities handling CDC
and to analyze the need for TWIC readers.
---------------------------------------------------------------------------

\23\ A copy of the study is available in the docket for this
final rule. Corrective Action Plan from the Assessment of the Risk
Mitigation Value of the Transportation Worker Identification
Credential; Report to Congress, June 2020.
---------------------------------------------------------------------------

In September 2020, the Coast Guard commissioned the HSOAC, operated
by the RAND Corporation, to conduct an analysis to identify the
population of facilities handling CDC impacted by the 2016 TWIC Reader
final rule, develop a risk-consequence analysis for these facilities,
and conduct a benefit-cost analysis.
In response to the 2023 Authorization Act mandate discussed
previously, the Coast Guard published the 2023 Conforming Amendment on
April 17, 2023, which changed the implementation dates in 33 CFR
105.253(a)(2) through (4) from May 8, 2023, to May 8, 2026.\24\
---------------------------------------------------------------------------

\24\ 88 FR 23349.
---------------------------------------------------------------------------

IV. Discussion of Comments

In response to the 2022 Second Reader Delay NPRM, which proposed a
delay of 3, 4, 5, or 6 years, the Coast Guard received five public
comments, two of which were duplicate submissions.\25\ All commenters
supported the Coast Guard's proposal to delay the implementation of the
TWIC reader rule. Additionally, all commenters generally supported a
delay of 6 years.
---------------------------------------------------------------------------

\25\ 87 FR 74563.
---------------------------------------------------------------------------

All comments the Coast Guard received mentioned the 2022 RAND
Corporation's HSOAC analysis, titled ``Risk-Informed Analysis of
Transportation Worker Identification Credential (TWIC) Reader
Requirements,'' and either raised concerns or agreed with the
conclusions found in the analysis.
The Coast Guard acknowledges receipt of the HSOAC analysis and
appreciates the work that was performed to assemble the report.
However, at present, we are not able to comment on the analysis, as we
continue to evaluate its findings and recommendations.
While all commenters generally supported a delay of up to 6 years,
one commenter thought the current 3-year delay could potentially be
sufficient for the Coast Guard to review the RAND study, receive
additional stakeholder input, and promulgate a new TWIC rule consistent
with the new data. That commenter raised concerns about the uncertainty
that a lengthy delay may cause for industry, particularly for vendors
involved in the production and maintenance of TWIC readers. Two
commenters also suggested areas for further study, including on the
potential costs of implementing TWIC readers, and proposed several ways
of amending the 2016 TWIC Reader final rule in light of the RAND study
findings. While we recognize the industry's need for regulatory
certainty and clarity, we believe that the delay to May 8, 2029,
although potentially lengthening a period of uncertainty, is for the
valid purpose of providing time to determine the best course of action
with regard to the 2016 TWIC Reader final rule.

V. Discussion of the Rule To Delay the Effective Date

In this final rule (also referred to as the ``2023 TWIC Reader
Delay rule''), we delay the effective date for certain facilities to
May 8, 2029. The 2016 TWIC Reader final rule remains in effect for
facilities receiving vessels certificated to carry more than 1,000
passengers, as this final rule does not affect those facilities.
This final rule delays implementing TWIC readers for (1) facilities
that handle CDC in bulk but do not transfer those cargoes from or to a
vessel; (2) facilities that handle CDC in bulk and do transfer those
cargoes from or to a vessel; and (3) facilities that receive vessels
carrying CDC in bulk, but do not, during that vessel-to-facility
interface, transfer those bulk cargoes from or to those vessels. This
delay allows the Coast Guard to accurately determine the affected
population through the 2022 RAND Corporation's HSOAC analysis and have
further time to analyze the potential effectiveness of the TWIC reader
requirement for these facilities. The HSOAC analysis assesses potential
risks of CDC, including the types of CDC, population density within a
certain distance of the facility, and other risk and consequence
aspects.
After the Coast Guard completes its review of the HSOAC analysis,
its conclusions, and its recommendations, we will determine whether any
future rulemaking regarding the effective date of the 2016 TWIC Reader
final rule is necessary. If such a rulemaking begins, industry will be
able to provide further input through notice and comment rulemaking.

VI. Regulatory Analyses

This final rule further delays the effective date for three types
of facilities affected by the 2016 TWIC Reader final rule.
Specifically, these are (1) facilities that handle CDC in bulk, but do
not transfer those cargoes from or to a

[[Page 86727]]

vessel; (2) facilities that handle CDC in bulk and do transfer those
cargoes from or to a vessel; and (3) facilities that receive vessels
carrying CDC in bulk, but do not, during that vessel-to-facility
interface, transfer those bulk cargoes from or to those vessels.
Currently, the effective date for these facilities is May 8, 2026.
Below, we provide an updated regulatory analysis of the 2020 TWIC
Reader Delay final rule that presents the impacts of delaying the
effective date of the final rule for the three types of Risk Group A
facilities defined in the preceding paragraph. For this updated
analysis, we estimated the costs of this 2023 final rule, the costs of
the 2023 Conforming Amendment, and the 2020 TWIC Reader Delay final
rule, utilizing a 13-year analysis period in order to compare them to
derive the cost savings for our baselines.

A. Regulatory Planning and Review

Executive Orders 12866 (Regulatory Planning and Review), as amended
by Executive Order 14094 (Modernizing Regulatory Review), and affirmed
by Executive Order 13563 (Improving Regulation and Regulatory Review)
direct agencies to assess the costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasizes the importance
of quantifying costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility.
This final rule is a significant regulatory action under section
3(f) of Executive Order 12866, as amended by Executive Order 14094, but
it is not significant under section 3(f)(1). Accordingly, the Office of
Management and Budget (OMB) has reviewed this final rule. A Regulatory
Analysis (RA) follows.
On the 17th of April 2023, the Coast Guard published the 2023
Conforming Amendment, altering the implementation date for TWIC readers
in certain risk group A facilities from May 8, 2023, to May 8,
2026.\26\ This final rule replaces the 2023 Conforming Amendment, which
is currently in effect, and thus delays implementation until May 8,
2029. In order to provide a comprehensive estimate of the impacts of
this rulemaking, the Coast Guard utilizes two baselines, a ``Pre-
Conforming Amendment'' (``Pre-CA'') baseline and a ``No Action''
baseline.
---------------------------------------------------------------------------

\26\ Document Citation: 88 FR 23349; Page: 23349-23350 (2
pages); CFR: 33 CFR 105; Agency/Docket No. USCG-2023-0265 Document
Number: 2023-08040; Federal Register: Transportation Worker
Identification Credential-Facility Reader Requirement; Conforming
Amendment.
---------------------------------------------------------------------------

The No Action baseline represents the current state without this
rulemaking in other words a world in which the requirements would go
into effect in 2025. Quantifying costs against the No Action baseline
includes only costs directly attributable to this rule and excludes any
costs derived from the 2023 Conforming Amendment. The period of impact
for costs for the No Action baseline is 2025 to 2034, and any change in
cost or cost savings can be attributed to the difference between the
expiration of the 2023 Conforming Amendment and this final rule.
The Pre-CA baseline captures costs across two different time
horizons. First, it provides transparency regarding cost savings
realized from 2022 to 2025 due to the 2023 Conforming Amendment.
Second, it captures new cost savings between 2025 to 2034 that stem
from this final rule. The entire period of impact for the Pre-CA
baseline is 2022 to 2034. We compare the costs attributed to this
baseline to the costs under the 2020 TWIC Reader Delay final rule,
resulting in the outlined cost savings. We use an aligned period of
analysis across both the No Action and Pre-CA baselines to provide a
consistent comparison for our estimates. Therefore, the period of
analysis for each baseline in our RA is 2022 to 2034. See Illustration
1 for a depiction of our baselines, periods of impact, and period of
analysis.
[GRAPHIC] [TIFF OMITTED] TR31OC24.000

[[Page 86728]]

In accordance with OMB Circular A-4, we have prepared an accounting
statement for each baseline showing the classification of impacts
associated with both the Pre-CA and the No Action baselines. We have
updated our dollar year to 2023. The No Action baseline can be seen in
table 1A, while the Pre-CA baseline can be seen in table 1B.

Table 1A--OMB A-4 Accounting Statement Period of Analysis 2022-2034, 2023 TWIC Reader Delay Rule
[No Action baseline]
[2023 Dollars]
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Primary estimate Source
----------------------------------------------------------------------------------------------------------------
Benefits
----------------------------------------------------------------------------------------------------------------
Annualized monetized benefits................ .............. 7% RA.
.............. 3%
--------------------------------
Annualized quantified, but unmonetized, None. RA.
benefits.
--------------------------------
Unquantifiable Benefits...................... For facilities with a delayed RA.
compliance, this final rule
will postpone the benefits of
electronic TWIC inspection.
----------------------------------------------------------------------------------------------------------------
Costs
----------------------------------------------------------------------------------------------------------------
Annualized, monetized........................ .............. 7% RA.
Costs (Dollars, Millions).................... .............. 3% RA.
--------------------------------
Annualized quantified, but unmonetized, costs None. RA.
--------------------------------
Qualitative (un-quantified) cost savings..... None. RA.
----------------------------------------------------------------------------------------------------------------
Cost Savings
----------------------------------------------------------------------------------------------------------------
Annualized monetized costs (Dollars, ($4.36) 7% RA.
Millions).
Annualized monetized costs (Dollars, ($3.14) 3% RA.
Millions).
--------------------------------
Annualized quantified, but unmonetized, costs None. RA.
--------------------------------
Qualitative (un-quantified) cost savings..... This final rule delays the RA.
cost to retrieve or replace
lost personal identification
numbers (PINs) to use with
TWICs for facilities with
delayed implementation.
----------------------------------------------------------------------------------------------------------------
Transfers
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers: ``on budget'' Not calculated. RA.
--------------------------------
From whom to whom?........................... RA.
--------------------------------
Annualized monetized transfers: ``off- None. .................................
budget''.
--------------------------------
From whom to whom?........................... None. .................................
----------------------------------------------------------------------------------------------------------------
Miscellaneous Analyses/Category
----------------------------------------------------------------------------------------------------------------
Effects on Tribal, State, and/or local None. .................................
governments.
--------------------------------
Effects on small businesses.................. This final rule does not have RA.
a significant economic impact
on a substantial number of
small entities.
--------------------------------
Effects on wages............................. None. .................................
--------------------------------
Effects on growth............................ No determination. .................................
----------------------------------------------------------------------------------------------------------------

[[Page 86729]]

Table 1B--OMB A-4 Accounting Statement Period of Analysis 2022-2034, 2023 TWIC Reader Delay Rule
[Pre-CA baseline]
[2023 Dollars]
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Primary estimate Source
----------------------------------------------------------------------------------------------------------------
Benefits
----------------------------------------------------------------------------------------------------------------
Annualized monetized benefits................ .............. 7% RA.
.............. 3%
--------------------------------
Annualized quantified, but unmonetized, None. RA.
benefits.
--------------------------------
Unquantifiable Benefits...................... For facilities with a delayed RA.
compliance, this final rule
will postpone the benefits of
electronic TWIC inspection.
----------------------------------------------------------------------------------------------------------------
Costs
----------------------------------------------------------------------------------------------------------------
Annualized, monetized........................ .............. 7% RA.
Costs (Dollars, Millions).................... .............. 3% RA.
--------------------------------
Annualized quantified, but unmonetized, costs None. RA.
--------------------------------
Qualitative (un-quantified) cost savings..... None. RA.
----------------------------------------------------------------------------------------------------------------
Cost Savings
----------------------------------------------------------------------------------------------------------------
Annualized monetized costs (Dollars, ($10.49) 7% RA.
Millions).
Annualized monetized costs (Dollars, ($7.55) 3% RA.
Millions).
--------------------------------
Annualized quantified, but unmonetized, costs None. RA.
--------------------------------
Qualitative (un-quantified) cost savings..... This final rule delays the RA.
cost to retrieve or replace
lost personal identification
numbers (PINs) to use with
TWICs for facilities with
delayed implementation.
----------------------------------------------------------------------------------------------------------------
Transfers
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers: ``on budget'' Not calculated. RA.
--------------------------------
From whom to whom?........................... RA.
--------------------------------
Annualized monetized transfers: ``off- None. .................................
budget''.
--------------------------------
From whom to whom?........................... None. .................................
----------------------------------------------------------------------------------------------------------------
Miscellaneous Analyses/Category
----------------------------------------------------------------------------------------------------------------
Effects on Tribal, State, and/or local None. .................................
governments.
--------------------------------
Effects on small businesses.................. This final rule does not have RA.
a significant economic impact
on a substantial number of
small entities.
--------------------------------
Effects on wages............................. None. .................................
--------------------------------
Effects on growth............................ No determination. .................................
----------------------------------------------------------------------------------------------------------------

This final rule further delays the effective date for certain
facilities--that is, all facilities that handle CDC in bulk--affected
by the 2016 TWIC Reader final rule. The current effective date of the
2016 TWIC Reader final rule for these facilities is May 8, 2026. This
was established by the 2023 Conforming Amendment (88 FR 23349), which
changed the implementation dates in 33 CFR 105.253(a)(2) through (4)
from May 8, 2023 to May 8, 2026. With this final rule, the 2023 TWIC
Reader Delay rule, we are delaying the effective date for these
facilities for 3 years, from the 2023 Conforming Amendment expiration
date of May 8, 2026, to May 8, 2029.
This final rule delays the effective date of the 2020 TWIC Reader
Delay final rule by an additional 3 years (until May 8, 2029) for (1)
facilities that handle CDC in bulk but do not transfer it from or to a
vessel; (2) facilities that handle CDC in bulk and do transfer those
cargoes from or to a vessel; and (3) facilities that receive vessels
carrying

[[Page 86730]]

bulk CDC, but, during that vessel-to-facility interface, do not
transfer bulk CDC from or to those vessels. This final rule does not
modify any of the regulatory requirements under the 2016 TWIC Reader
final rule. We did not revise our fundamental methodologies for the
calculation of the costs and cost savings from a delay in the final
rule's effective date for certain facilities. Nor did we revise key
assumptions from the 2016 TWIC Reader final rule's RA, as there were no
comments from the public regarding the methodology during the NPRM for
that rule.\27\
---------------------------------------------------------------------------

\27\ The 2016 TWIC Reader final rule's RA is available in the
docket; docket number USCG-2007-28915-0231.
---------------------------------------------------------------------------

In the 2016 TWIC Reader final rule's RA, we estimated that 525
facilities and 1 vessel out of the MTSA-regulated entities (13,825
vessels and more than 3,270 facilities) would have to comply with that
final rule's electronic TWIC inspection requirements, using the
Maritime Security Risk Analysis Model's (MSRAM's) risk-based tiered
approach.\28\ Using data from MSRAM, we estimate that this final rule
delays the implementation of the 2016 TWIC Reader final rule for 370 of
the 525 affected Risk Group A facilities by 3 years, while the
remaining 155 facilities and 1 vessel were required to implement the
2016 TWIC Reader final rule requirements by June 8, 2020. While the
rule was implemented June 8, 2020, the Coast Guard delayed the
enforcement of requirements until January 1, 2022, due to the global
COVID-19 pandemic. These 370 facilities are those that (1) handle bulk
CDC, but do not transfer it from or to a vessel; (2) handle CDC in bulk
and do transfer those cargoes from or to a vessel; and (3) receive
vessels carrying bulk CDC but, during the vessel-to-facility interface,
do not transfer the bulk CDC from or to those vessels. We did not
include these facilities in our MSRAM risk analysis for the 2016 TWIC
Reader final rule or in its RA, because we could not determine the
number of those facilities at the time.
---------------------------------------------------------------------------

\28\ See table 2.8 on page 26 of the 2016 TWIC Reader final
rule's regulatory analysis for the estimate of 525 facilities, and
table 2.1 on page 23 for the estimate of 1 vessel (In the docket,
number USCG-2007-28915-0231).
---------------------------------------------------------------------------

Varying estimates of the number of facilities that meet the
criteria, and that fall into the covered population category, have been
provided to the Coast Guard by the 2022 RAND Corporation's HSOAC
analysis to improve the risk methodology and determine the new risk
groups. The population numbers are currently under internal review
while we assess an accurate final count of the population for future
regulatory action. The final count of facilities will most likely be
similar, but not identical to the cited 370 statistic. Therefore, the
Coast Guard is using its discretion to delay the implementation of the
2016 TWIC Reader final rule on those facilities, pending a final
facility count. Future regulatory analyses will update these estimates,
once the Coast Guard has assessed which CDC facilities fall within the
level or risk that is deemed appropriate to require a TWIC reader. If
such a rulemaking is begun, industry will be able to provide further
input through notice and comment rulemaking.
We updated our final rule cost estimates in the NPRM preceding this
final rule,\29\ from 2012 to 2023, based on Gross Domestic Product
(GDP) deflator data from the U.S. Bureau of Economic Analysis
(BEA).\30\ The GDP deflator is a measure of the change in price of
domestic goods and services purchased by consumers, businesses, and the
Government.
---------------------------------------------------------------------------

\29\ 87 FR 74563.
\30\ For consistency across regulatory analyses, we are using
the annual Implicit Price Deflators for Gross Domestic Product (the
BEA's National Income and Product Accounts (NIPA) Table 1.1.9)
values using 2023, accessed by the Coast Guard through the BEA's
publicly available data sets. The NIPA tables can be found at
<a href="https://apps.bea.gov/iTable/index_nipa.cfm">https://apps.bea.gov/iTable/index_nipa.cfm</a> (last visited 04/28/
2024).
---------------------------------------------------------------------------

We do not anticipate any new costs to industry when this final rule
is implemented, because this final rule does not change the
applicability of the 2020 TWIC Reader Delay final rule or any
subsequent amendments thereof. This final rule results in no other
changes to the 2020 TWIC Reader Delay final rule. There is no impact to
the 1 previously affected vessel and 155 MTSA facilities that complied
with the 2020 TWIC Reader Delay final rule as of June 8, 2020. Total
cost figures for each prior rule can be found in table 2A, which
summarizes the costs of the 2020 TWIC Reader Delay final rule, the 2023
Conforming Amendment, and this final rule.

Table 2A--Summary of Rules
[2023 Dollars]
----------------------------------------------------------------------------------------------------------------
2020 TWIC Reader Delay 2023 Conforming 2023 TWIC Reader Delay
Category final rule Amendment rule
----------------------------------------------------------------------------------------------------------------
(X).................... (Y).................... (Z)
----------------------------------------------------------------------------------------------------------------
Period of Impact & Analysis.......... Costs begin to be Costs begin to be Represents an
incurred by entities incurred by entities additional delay of 3
in 2022, and the in 2025, and the years, effective post
analysis is from 2022- analysis is from 2022- 2023 Conforming
2034 Discounted costs 2034. Amendment. Costs begin
diverge from the 2020 to be incurred by
TWIC Reader Delay entities in 2028, and
final rule due to the analysis is from
modification of 2022-2034.
discounting schedule.
Total costs differ due
to extended period of
analysis.

[[Page 86731]]

Affected Population.................. 370 facilities that 370 facilities that 370 facilities that
handle bulk CDC, but handle bulk CDC, but handle bulk CDC, but
do not transfer it do not transfer it do not transfer it
from or to a vessel, from or to a vessel, from or to a vessel,
and that handle bulk and that handle bulk and that handle bulk
CDC and do transfer CDC and do transfer CDC and do transfer
such cargoes from or such cargoes from or such cargoes from or
to a vessel (to comply to a vessel (to comply to a vessel (to comply
by May 8, 2023). The by May 8, 2026). The by May 8, 2029). The
rule also applies to rule also applies to rule also applies to
facilities that facilities that facilities that
receive vessels receive vessels receive vessels
carrying bulk CDC, carrying bulk CDC, carrying bulk CDC,
but, during that but, during that but, during that
vessel-to-facility vessel-to-facility vessel-to-facility
interface, do not interface, do not interface, do not
transfer bulk CDC from transfer bulk CDC from transfer bulk CDC from
or to the vessel. or to the vessel. or to the vessel.
However, the number of
these facilities
cannot be determined
at this time. The
number of these
facilities is
currently under review
by the Coast Guard
and, if warranted,
will be published in a
future NPRM, which
would revise risk
groups to comply by
May 8, 2029.
Costs to Industry and Government Industry: $23.05 Industry: $16.92 Industry: $12.56
(Dollars, millions, 7% discount (annualized). (annualized). (annualized).
rate). Annualized. Government: $0.008 Government: $0.008 Government: $0.006
(annualized). (annualized). (annualized).
Both: $23.06 Both: $16.93 Both: $12.57
(annualized). (annualized). (annualized).
Costs to Industry and Government Industry: $192.63 (13- Industry: $141.42 (13- Industry: $104.98 (13-
(Dollars, millions, 7% discount year). year). year).
rate). Over 13-year analysis period. Government: $0.078 (13- Government: $0.063 (13- Government: $0.052 (13-
year). year). year).
Both: $192.71 (13-year) Both: $141.48 (13-year) Both: $105.03 (13-
year).
Costs (Qualitative).................. Time to retrieve or Delayed enhanced access Delays enhanced access
replace lost PINs for control and security control and security
use with TWICs. for the facilities for the facilities
with delayed with delayed
implementation. implementation.
Benefits (Qualitative)............... Enhanced access control Time to retrieve or This final rule delays
and security at U.S. replace lost PINs for the cost to retrieve
maritime facilities use with TWICs. or replace lost PINs
and on board U.S.- for use with TWICs for
flagged vessels. facilities with
delayed
implementation.
Reduction of human Reduction of human Delays the reduction of
error when checking error when checking human error when
identification and identification and checking
manning access points. manning access points. identification and
manning access points
for the facilities
with delayed
implementation.
----------------------------------------------------------------------------------------------------------------

This final rule results in cumulative cost savings to industry and
to the Government of $36.45 million (discounted at 7 percent) over a
13-year period of analysis ($105.03 million-$141.48 million). At a 7-
percent discount rate, we estimate the total annualized cost savings to
be $4.36 million ($12.57 million-$16.93 million). These numbers can be
seen under the column for the No Action baseline in table 2B.
Similarly, when accounting for both the savings of the 2023 Conforming
Amendment and this final rule, the total cost savings can be seen in
the Pre-CA baseline in table 2B.

2B--Summary of Costs (Cost Savings) for No Action and Pre-CA Baseline
------------------------------------------------------------------------
Total cost savings (2023 No Action baseline Pre-CA baseline =
dollars, millions) = Z - Y Z - X
------------------------------------------------------------------------
Annualized (7% discount rate)... Industry: ($4.36) Industry: ($10.49)
(annualized) (annualized).
Government: Government:
($0.001) ($0.003)
(annualized). (annualized).
Total: ($4.36) Total: ($10.49)
(annualized). (annualized).
13-Year (7% discount rate)...... Industry: ($36.44) Industry: ($87.66)
(13-year) (13-year).
Government: Government:
($0.01) (13-year). ($0.02) (13-
Total: ($36.45) year).
(13-year). Total: ($87.68)
(13-year).
Annualized (3% discount rate)... Industry: ($3.14) Industry: ($7.55)
(annualized) (annualized).
Government: Government:
($0.001) ($0.001)
(annualized). (annualized).
Total: ($3.14) Total: ($7.55)
(annualized). (annualized).
13-Year (3% discount rate)...... Industry: ($33.41) Industry: ($80.31)
(13-year) (13-year).
Government: Government:
($0.01) (13-year). ($0.01) (13-
Total: ($33.41) year).
(13-year). Total: ($80.32)
(13-year).
------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

[[Page 86732]]

Methodology
Final Rule Costs Inflated to 2023 Dollars and Adjusted for Discounting
Although we have updated our analysis from the 2016 NPRM for this
rulemaking to reflect newer inflation and population figures, we did
not modify the methodology of our primary regulatory analyses.
We used an inflation factor from the annual GDP deflator data. We
calculated the inflation factor of 1.312 by modifying the deflator base
year to 2023 (GDP deflator = 100 at 2023 prices) and dividing the
annual 2023 index number (100) by the annual 2012 index number (76.2).
We then applied this inflation factor to the costs for vessels and
additional costs, which include additional delay costs, travel costs,
and the cost to replace TWIC readers that fail.
For facilities, we applied this inflation factor to the total cost-
by-cost component, because this final rule applies to only some of
these cost elements. Facility costs include capital costs, maintenance
costs, and operational costs. Capital costs consist of the cost to
purchase and install TWIC readers, as well as the cost to fully replace
TWIC readers 5 years after the original installation. Maintenance costs
account for the costs to maintain TWIC readers every year after the
original installation. Operational costs include costs that occur only
at the time of the TWIC reader installation, such as those for amending
security plans, creating a recordkeeping system, and initial training.
Operational costs also include ongoing costs, administrative duties,
including downloading the canceled card list, and ongoing annual
training.
For wages, we have updated rates used in the calculations of costs
to the most recent available data for the labor category and industry.
We obtained wages from the Bureau of Labor Statistics (BLS)
Occupational Employment and Wage Estimates, and then we calculated
burdened wages (a wage's total cost to the employer) by utilizing the
BLS Employer Costs of Employee Compensation multipliers relevant to the
job type and industry.
Due to the extended timeframe of analysis, the total undiscounted
costs for the 2023 TWIC Reader Delay rule have increased over those
presented in the original publication. We have updated the discounting
methodology for this rule, changing our base year for discounting to
2023; thus, the discounted totals presented for the 2020 TWIC Reader
Delay final rule also diverge from the original publication.
Final Rule Costs
This final rule delays the effective date of the 2020 TWIC Reader
delay final rule by an additional 3 years (until May 8, 2029) for 370
facilities that (1) handle bulk CDC but do not transfer it from or to a
vessel; (2) facilities that handle CDC in bulk, and do transfer those
cargoes from or to a vessel; and (3) an undetermined number of
facilities that receive vessels carrying bulk CDC, but do not transfer
it from or to the vessel during that vessel-to-facility interface. To
allow for a consistent comparison between the baseline estimates and
the costs of this rule, we maintain the assumption from the RA in the
2016 TWIC Reader final rule that 50 percent of facilities will comply
for each of the 2 final years preceding the final implementation date.
Therefore, for this final rule, we assume that 50 percent of facilities
with a 3-year implementation delay will comply in May of Year 2028, and
50 percent of facilities with a 6-year implementation delay will comply
in Year 2029. We maintain this assumption to provide a consistent
comparison between the baseline cost estimates presented in the 2016
TWIC Reader final rule, and the costs of this final rule.
The costs are separated into three categories (undiscounted 2023
dollars): (1) capital costs of which the initial average capital cost
per facility will be $322,410; (2) maintenance costs, of which the
average annual cost incurred per facility for the first full year of
operation following TWIC implementation, will be $4,970; and (3)
operational costs, which on average per facility is $6,450 for the
first year and, will be $2,173 reoccurring from the second year on. The
total undiscounted costs for the first year of operation, on average,
per facility, will be the sum of the capital costs and operational
costs totaling $328,950. Ongoing annual costs for maintenance and
operations will be $7,143 ($4,970 + $2,173).
After the initial 5-year period of use, TWIC readers may need to be
replaced. Our assumption is that all readers will need to be replaced
at 5-year intervals, although it is likely that this will not be the
case, and that only a percentage of readers will need replacement. The
average cost per facility to replace its TWIC readers is $5,248.
To estimate the capital costs in a given year, we multiplied the
total input capital costs for all facilities by the percentage of
facilities incurring costs each year. We estimated operational costs
for periods after the first year in a similar manner, multiplying total
operational costs by the percentage of facilities complying in a given
year. Because maintenance costs are not incurred until the year after
the TWIC readers are installed, we calculated the final rule
maintenance costs each year by multiplying the total input costs for
all facilities by the percentage of facilities complying in the
previous year. For example, the first year of implementation costs
(Year 2028 in table 3) are capital costs plus operational costs
(($322,410 + $6,540) x 185) = $60,855,928 (2023 dollars). Table 3
presents the total cost to facilities under this final rule, and the
preceding rules.

Table 3--Total Cost for Facilities Under 2023 TWIC Reader Delay Rule 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule
[Millions, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 86733]]

2029................................................. 185 370 59.65 0.92 1.61 62.18
2030................................................. 0 370 0.00 1.84 0.80 2.64
2031................................................. 0 370 0.00 1.84 0.80 2.64
2032................................................. 0 370 0.00 1.84 0.80 2.64
2033................................................. 0 370 9.19 1.84 0.80 11.84
2034................................................. 0 370 9.19 1.84 0.80 11.84
--------------------------------------------------------------------------------------------------
Total............................................ ................. .............. 137.68 10.11 6.84 154.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 Conforming Amendment
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Number of Total number Capital Maintenance Operational Undiscounted
new facilities of facilities costs costs costs total
complying (A2)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022................................................. 0 0 $0.00 $0.00 $0.00 $0.00
2023................................................. 0 0 0.00 0.00 0.00 0.00
2024................................................. 0 0 0.00 0.00 0.00 0.00
2025................................................. 185 185 59.65 0.00 1.21 60.86
2026................................................. 185 370 59.65 0.92 1.61 62.18
2027................................................. 0 370 0.00 1.84 0.80 2.64
2028................................................. 0 370 0.00 1.84 0.80 2.64
2029................................................. 0 370 0.00 1.84 0.80 2.64
2030................................................. 0 370 9.19 1.84 0.80 11.84
2031................................................. 0 370 9.19 1.84 0.80 11.84
2032................................................. 0 370 0.00 1.84 0.80 2.64
2033................................................. 0 370 0.00 1.84 0.80 2.64
2034................................................. 0 370 0.00 1.84 0.80 2.64
--------------------------------------------------------------------------------------------------
Total............................................ ................. .............. 137.68 15.63 9.25 162.57
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020 TWIC Reader Delay Final Rule *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Number of Total number Capital Maintenance Operational Undiscounted
new facilities of facilities costs costs costs total
complying (A3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022................................................. 185 185 59.65 0.00 1.21 60.86
2023................................................. 185 370 59.65 0.92 1.61 62.18
2024................................................. 0 370 0.00 1.84 0.80 2.64
2025................................................. 0 370 0.00 1.84 0.80 2.64
2026................................................. 0 370 0.00 1.84 0.80 2.64
2027................................................. 0 370 9.19 1.84 0.80 11.84
2028................................................. 0 370 9.19 1.84 0.80 11.84
2029................................................. 0 370 0.00 1.84 0.80 2.64
2030................................................. 0 370 0.00 1.84 0.80 2.64
2031................................................. 0 370 0.00 1.84 0.80 2.64
2032................................................. 0 370 9.19 1.84 0.80 11.84
2033................................................. 0 370 9.19 1.84 0.80 11.84
2034................................................. 0 370 0.00 1.84 0.80 2.64
--------------------------------------------------------------------------------------------------
Total............................................ ................. .............. 156.07 21.15 11.67 188.88
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.
* Discounted costs and cost savings totals of 2020 TWIC Reader delay final rule presented here diverge from numbers published in rule, due to
discounting schedule change and analysis timeframe.

Table 4 summarizes the total costs to industry of this final rule
in 2023 dollars. This final rule does not impact the compliance
schedule for vessels; therefore, these costs remain unchanged. We
calculated the additional costs by multiplying the totals in table 3 by
the percentage of facilities complying within a given year and phasing
them in over 2 years. We estimate the total costs to industry in this
final rule to be $104.98 million over 13 years, and for the annualized
cost to industry to be $12.56 million at a 7-perent discount rate.

[[Page 86734]]

Table 4--Total Industry Cost for 2023 TWIC Reader Delay Rule, 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule
[Millions, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Facility Vessel Additional Undiscounted 7% 3%
costs
(A1) ~ (B1) C1 = (A1 + B1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 TWIC Reader Delay Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2023.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2024.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2025.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2026.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2027.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2028.................................................. 60.86 0.00 2.78 63.63 39.63 51.74
2029.................................................. 62.18 0.00 5.56 67.73 39.42 53.47
2030.................................................. 2.64 0.00 5.56 8.20 4.46 6.28
2031.................................................. 2.64 0.00 5.56 8.20 4.17 6.10
2032.................................................. 2.64 0.00 5.56 8.20 3.90 5.92
2033.................................................. 11.84 0.00 3.77 15.61 6.93 10.95
2034.................................................. 11.84 0.00 3.77 15.61 6.48 10.63
-------------------------------------------------------------------------------------------------
Total............................................. 154.64 0.00 32.54 187.18 104.98 145.09
-------------------------------------------------------------------------------------------------
Annualized.................................... .............. .............. .............. 14.40 12.56 13.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 Conforming Amendment
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Facility Vessel Additional Undiscounted 7% 3%
costs *
(A2) (B2) C2 = (A2 + B2)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2023.................................................. 0.00 0.00 0.00 0.00 0.00 $0.00
2024.................................................. 0.00 0.00 0.00 0.00 0.00 0.00
2025.................................................. 60.86 0.00 2.78 63.63 48.55 56.54
2026.................................................. 62.18 0.00 5.56 67.73 48.29 58.43
2027.................................................. 2.64 0.00 5.56 8.20 5.46 6.87
2028.................................................. 2.64 0.00 5.56 8.20 5.11 6.67
2029.................................................. 2.64 0.00 5.56 8.20 4.77 6.47
2030.................................................. 11.84 0.00 5.56 17.39 9.46 13.33
2031.................................................. 11.84 0.00 5.56 17.39 8.84 12.94
2032.................................................. 2.64 0.00 5.56 8.20 3.90 5.92
2033.................................................. 2.64 0.00 5.56 8.20 3.64 5.75
2034.................................................. 2.64 0.00 5.56 8.20 3.40 5.58
-------------------------------------------------------------------------------------------------
Total............................................. 162.57 0.00 52.78 215.35 141.42 178.50
-------------------------------------------------------------------------------------------------
Annualized.................................... .............. .............. .............. 16.57 16.92 16.78
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020 TWIC Reader Delay Final Rule *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Facility Vessel Additional Undiscounted 7% 3%
costs
(A3) ~(B3) C3 = (A3 + B3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................. $60.86 $0.00 $2.78 $63.63 $59.47 $61.78
2023.................................................. 62.18 0.00 5.56 67.73 59.16 63.85
2024.................................................. 2.64 0.00 5.56 8.20 6.69 7.50
2025.................................................. 2.64 0.00 5.56 8.20 6.25 7.28
2026.................................................. 2.64 0.00 5.56 8.20 5.85 7.07
2027.................................................. 11.84 0.00 5.56 17.39 11.59 14.57
2028.................................................. 11.84 0.00 5.56 17.39 10.83 14.14
2029.................................................. 2.64 0.00 5.56 8.20 4.77 6.47
2030.................................................. 2.64 0.00 5.56 8.20 4.46 6.28
2031.................................................. 2.64 0.00 5.56 8.20 4.17 6.10
2032.................................................. 11.84 0.00 5.56 17.39 8.26 12.57
2033.................................................. 11.84 0.00 5.56 17.39 7.72 12.20
2034.................................................. 2.64 0.00 5.56 8.20 3.40 5.58
-------------------------------------------------------------------------------------------------
Total............................................. 188.88 0.00 69.45 258.33 192.63 225.40
-------------------------------------------------------------------------------------------------
Annualized.................................... .............. .............. .............. 19.87 23.05 21.19
--------------------------------------------------------------------------------------------------------------------------------------------------------
* These costs include additional delay, travel, and TWIC replacement costs due to TWIC failures.

[[Page 86735]]

~ Discounted costs and cost savings totals of 2020 TWIC Reader delay final rule presented here diverge from numbers published in rule, due to
discounting schedule change and analysis timeframe.
Note: Totals may not sum due to rounding.

Table 5A presents the estimated change in total costs to industry
from this final rule further delaying the implementation of the 2020
TWIC Reader delay final rule by an additional 3 years (until May 8,
2029) for (1) facilities that handle bulk CDC but do not transfer it
from or to a vessel; (2) facilities that handle CDC in bulk and do
transfer those cargoes from or to a vessel; and (3) facilities that
receive vessels carrying bulk CDC, but do not transfer it from or to
the vessel during that vessel-to-facility interface. The costs of this
final rule have been compared to the costs displayed in tables 3 and 4
for the 2023 Conforming Amendment. The resulting difference is what
this final rule estimates as the cost savings to industry from this
final rule's promulgation, represented by our No Action baseline. We
estimate, at a 7-percent discount rate, that the annualized cost
savings to industry to be $4.36 million, and the total cost savings to
be $36.44 million over 13 years for our No Action baseline.

Table 5A--Total Change to Industry Costs From the 2023 TWIC Reader Delay Rule
[No Action baseline]
[Millions, 2023 dollars]
----------------------------------------------------------------------------------------------------------------
Undiscounted (=
Year C1-C2) 7% 3%
----------------------------------------------------------------------------------------------------------------
Change in Costs (No Action Baseline)
----------------------------------------------------------------------------------------------------------------
2022................................................... $0.00 $0.00 $0.00
2023................................................... 0.00 0.00 0.00
2024................................................... 0.00 0.00 0.00
2025................................................... (63.63) (48.55) (56.54)
2026................................................... (67.73) (48.29) (58.43)
2027................................................... (8.20) (5.46) (6.87)
2028................................................... 55.44 34.52 45.07
2029................................................... 59.53 34.65 47.00
2030................................................... (9.19) (5.00) (7.05)
2031................................................... (9.19) (4.67) (6.84)
2032................................................... 0.00 0.00 0.00
2033................................................... 7.41 3.29 5.20
2034................................................... 7.41 3.07 5.04
--------------------------------------------------------
Total.............................................. (28.17) (36.44) (33.41)
--------------------------------------------------------
Annualized..................................... ................. (4.36) (3.14)
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Table 5B presents the estimated change in total costs to industry
between this final rule and the 2020 TWIC Reader Delay final rule, in
addition to the already existing 3-year extension from the 2023
Conforming Amendment, for a total delay of 6 years. The costs of this
final rule have been compared to the updated values for the 2020 TWIC
Reader Delay final rule, and the resulting difference is the cost
saving estimates to industry from this final rule's promulgation. From
the cumulative impacts of the 2023 Conforming Amendment and this final
rule, we estimate an annualized cost savings to industry of $10.49
million, for over 13 years at a 7-percent discount rate, for a total
cost savings of $87.66 million for our Pre-CA baseline.

Table 5B--Total Change to Industry Costs From the 2023 TWIC Reader Delay Rule
[Pre-CA baseline]
[Millions, 2023 dollars]
----------------------------------------------------------------------------------------------------------------
Undiscounted (=
Year C1-C3) 7% 3%
----------------------------------------------------------------------------------------------------------------
Change in Costs (Pre-CA Baseline)
----------------------------------------------------------------------------------------------------------------
2022................................................... ($63.63) ($59.47) ($61.78)
2023................................................... (67.73) (59.16) (63.85)
2024................................................... (8.20) (6.69) (7.50)
2025................................................... (8.20) (6.25) (7.28)
2026................................................... (8.20) (5.85) (7.07)
2027................................................... (17.39) (11.59) (14.57)
2028................................................... 46.24 28.80 37.60
2029................................................... 59.53 34.65 47.00
2030................................................... 0.00 0.00 0.00
2031................................................... 0.00 0.00 0.00
2032................................................... (9.19) (4.37) (6.64)
2033................................................... (1.79) (0.79) (1.25)

[[Page 86736]]

2034................................................... 7.41 3.07 5.04
--------------------------------------------------------
Total.............................................. (71.15) (87.66) (80.31)
--------------------------------------------------------
Annualized..................................... ................. (10.49) (7.55)
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Qualitative Costs
We have provided a brief description of the qualitative costs in
table 2A. This final rule delays the cost to retrieve or replace lost
PINs for use with TWICs for the facilities with delayed implementation.
Government Costs
We expect that this final rule will generate a cost savings to the
Government from delaying the review of the revised security plans for
370 Risk Group A facilities that (1) handle bulk CDC, but do not
transfer it from or to a vessel; (2) handle CDC in bulk and do transfer
those cargoes from or to a vessel; and (3) receive vessels carrying
bulk CDC but, during the vessel-to-facility interface, do not transfer
the bulk CDC from or to those vessels. There is no change in cost to
the Government resulting from TWIC inspections, because inspections are
already required under MTSA, and the TWIC reader requirements do not
modify these requirements. As such, there is no additional cost to the
Government.
To estimate the cost to the Government, we followed the same
approach as the industry cost analysis and adjusted the cost estimate
presented in the 2016 TWIC Reader final rule's RA from 2012 dollars to
2023 dollars for non-wage inputs. For the Government analysis, we used
the 2022 hourly standard in Government wage rate for an E-5 level staff
member, $58 per hour, from Commandant Instruction 7310.1W: Reimbursable
Standard Rates, in place of the 2012 wage of $49 per hour; these are
the most current values that the Coast Guard has been cleared to use
for the RA.\31\ Due to the change in wage rates, we have included the
changed values to the Government's cost schedules for all following
tables. We followed the calculations outlined in the 2016 TWIC Reader
final rule's RA to estimate an undiscounted cost to the Government of
$42,920 in years 2028 and 2029 ($58 x 4 hours per review x 185 plans),
which would result from not extending the delay of the 2020 TWIC Reader
delay final rule.
---------------------------------------------------------------------------

\31\ Because the Coast Guard is not delaying the implementation
schedule for vessels, this final rule has no impact on the costs
associated with vessel security plans (having already gone into
effect and not included in this population); therefore, we did not
include those costs in this RA.
---------------------------------------------------------------------------

Table 6 presents the cost schedule under this final rule, the
previous 2023 Conforming Amendment, and the 2020 TWIC Reader delay
final rule. We estimated the annualized Government cost to be $6,187 at
a 7-percent discount rate, for a total of $51,708 over 13 years, which
can be seen under column group A. For each of these rules, costs
accumulate over a 2-year period for an undiscounted cost of $42,920,
and, in the case of this final rule, occur for the years of 2028 and
2029. The undiscounted costs among all three estimates are the same,
only differing in their discounting. To estimate Government costs in
Year 2028 and Year 2029, we used the same approach as the above cost
estimates.

Table 6--Total Government Cost Under the 2023 TWIC Reader Delay Rule, 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule, for Risk Group A
[2023 Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 TWIC Reader Delay rule (A) 2023 Conforming Amendment (B) 2020 TWIC Reader Delay final rule *
-------------------------------------------------------------------------------- (C)
---------------------------------------
Year Total Total Total
undiscounted 7% 3% undiscounted 7% 3% undiscounted 7% 3%
(A1) (B1) (C1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022............................ $0 $0 $0 $0 $0 $0 $42,920 $40,112 $41,670
2023............................ 0 0 0 0 0 0 42,920 37,488 40,456
2024............................ 0 0 0 0 0 0 0 0 0
2025............................ 0 0 0 42,920 32,743 38,134 0 0 0
2026............................ 0 0 0 42,920 30,601 37,023 0 0 0
2027............................ 0 0 0 0 0 0 0 0 0
2028............................ 42,920 26,728 34,898 0 0 0 0 0 0
2029............................ 42,920 24,980 33,881 0 0 0 0 0 0
2030............................ 0 0 0 0 0 0 0 0 0
2031............................ 0 0 0 0 0 0 0 0 0
2032............................ 0 0 0 0 0 0 0 0 0
2033............................ 0 0 0 0 0 0 0 0 0
2034............................ 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------
Total....................... 85,840 51,708 68,779 85,840 63,345 75,157 85,840 77,600 82,126
-----------------------------------------------------------------------------------------------------------------------
Annualized.............. .............. 6,187 6,467 .............. 7,579 7,067 .............. 9,285 7,722
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Discounted costs and cost savings totals of 2020 TWIC Reader Delay final rule presented here diverge from numbers published previously in final rule,
due to discounting schedule change and analysis timeframe.
Note: Totals may not sum due to rounding.

[[Page 86737]]

Table 7 presents the estimated change in costs to the Government
from delaying the implementation of the 2020 TWIC Reader Delay final
rule by an additional 3 years (until May 8, 2029); this applies to (1)
facilities that handle bulk CDC but do not transfer it from or to a
vessel; (2) facilities that handle CDC in bulk and do transfer those
cargoes from or to a vessel; and (3) facilities that receive vessels
carrying bulk CDC but do not transfer it from or to the vessel during
that vessel-to-facility interface. The costs of this final rule have
been compared to the costs under the 2023 Conforming Amendment. The
resulting difference is what we estimated as the cost savings to the
Government from this final rule's promulgation. We estimated an
annualized cost savings to the Government of $1,392 and total cost
savings of $11,637, in 2023 dollars, at a 7-percent discount rate for
our No Action baseline.

Table 7--Total Change (Cost Savings) to Government Cost From the 2023 TWIC Reader Delay Rule
[2023 Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
No Action baseline Pre-CA baseline
-----------------------------------------------------------------------------------------
Year Change in total Change in total
undiscounted (= 7% 3% undiscounted (= 7% 3%
A1-B1) A1-C1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 TWIC Reader Delay Rule Change in Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.......................................................... $0 $0 $0 ($42,920) ($40,112) ($41,670)
2023.......................................................... 0 0 0 (42,920) (37,488) (40,456)
2024.......................................................... 0 0 0 0 0 0
2025.......................................................... (42,920) (32,743) (38,134) 0 0 0
2026.......................................................... (42,920) (30,601) (37,023) 0 0 0
2027.......................................................... 0 0 0 0 0 0
2028.......................................................... 42,920 26,728 34,898 42,920 26,728 34,898
2029.......................................................... 42,920 24,980 33,881 42,920 24,980 33,881
2030.......................................................... 0 0 0 0 0 0
2031.......................................................... 0 0 0 0 0 0
2032.......................................................... 0 0 0 0 0 0
2033.......................................................... 0 0 0 0 0 0
2034.......................................................... 0 0 0 0 0 0
-----------------------------------------------------------------------------------------
Total..................................................... 0 (11,637) (6,378) 0 (25,892) (13,347)
-----------------------------------------------------------------------------------------
Annualized............................................ ................. (1,392) (600) ................. (3,098) (1,255)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Change in Benefits
As noted, this final rule delays the effective date of the 2016
TWIC Reader final rule requirement for three categories of facilities:
(1) facilities that handle bulk CDC but do not transfer it from or to a
vessel; (2) facilities that handle CDC and do transfer such cargoes
from or to a vessel; and (3) facilities that receive vessels carrying
bulk CDC but do not transfer bulk CDC from or to the vessel during that
vessel-to-facility interface.
Facilities for which this final rule applies will not realize the
enhanced benefits of electronic inspection, such as the increased
protection against individuals who do not hold valid TWICs being
granted unescorted access, enhanced verification of personal identity,
and a reduction in potential vulnerabilities, until May 8, 2029.
In addition, this final rule delays the cost to retrieve or replace
lost PINs for use with TWICs for the facilities with delayed
implementation. This is an unquantified cost savings which would accrue
to individual mariners and the Coast Guard.
Alternatives
(1) Status quo. One regulatory alternative to this final rule is
for the Coast Guard to take no action. Taking no further action would
result in the implementation on May 8, 2026, of the 2020 TWIC Reader
delay final rule, since the 2023 Authorization Act's mandate and the
2023 Conforming Amendment have extended the compliance deadline. These
entities would be required to implement the requirements for the
electronic inspection of TWICs and would incur the costs we estimated
in our 2016 TWIC Reader final rule's RA, unless the Coast Guard granted
a waiver.
(2) Waiver approach. Another alternative the Coast Guard considered
was a waiver approach. However, because we currently lack a
comprehensive risk analysis on the level of individualized facilities,
we do not believe this approach maximizes benefits. In the interim
period before the Coast Guard's final assessment of the 2022 RAND
Corporation's HSOAC analysis' comprehensive risk assessment, the Coast
Guard might issue blanket waivers that include facilities that may,
indeed, warrant the additional security of electronic inspection. For
example, consider two facilities with a 5,000-gallon tank of CDC each.
The tank in the first facility is placed near enough to the perimeter
fence in a populated area that, if the tank explodes, would kill enough
people to cause a transportation security incident (TSI) and,
therefore, should require electronic TWIC inspection. That same tank at
the other facility is located away from the water in an isolated area
within the MTSA footprint (not near a population). If this tank
explodes, it would not cause a TSI and, therefore, the facility should
not need to conduct electronic TWIC inspection. If the Coast Guard
issued a blanket waiver for those facilities with a storage tank of CDC
with 5,000 gallons or less, then we would not be properly implementing
these requirements to mitigate the risks as intended, as we are
currently unable to determine which facilities would pose valid risks
of a TSI. Extending the implementation deadline to 2029 will give the
Coast Guard sufficient time to analyze the risks these facilities
represent, and, if sufficient risks are identified, whether the benefit
of electronic TWIC

[[Page 86738]]

inspection warrants the cost of implementation.
We rejected both alternatives (``status quo'' and ``waiver
approach'') because they do not address our need to conduct a
comprehensive risk analysis at the individual facility level to analyze
the reader requirement at these facilities. These alternatives also do
not address our need to develop a consistent methodology that would
form the rationale for the Coast Guard when issuing waivers for these
facilities. Additionally, implementing a waiver system will cause
facilities to incur additional expenses during the application and
renewal process, and it will impose costs on the Coast Guard for
reviewing and issuing those waivers. Issuing this final rule will not
impose those costs on industry or Government, but will achieve the same
functional result.

B. Small Entities

Under the Regulatory Flexibility Act, 5 United States Code (U.S.C.)
601-612, we have considered whether this rule would have a significant
economic impact on a substantial number of small entities. The term
``small entities'' comprises small businesses, not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields, and governmental jurisdictions with
populations of less than 50,000.
The Coast Guard is delaying the effective date of the 2016 TWIC
Reader final rule from May 8, 2026, which was the implementation date
at the start of this rulemaking, until May 8, 2029, for facilities that
handle CDC in bulk. We estimate that, consistent with past and present
analyses, 370 facilities will experience cost savings under our No
Action baseline. We estimate that these facilities will experience an
annualized cost savings of approximately $11,784 (with a 7-percent
discount rate), and that, on average, each entity owns two facilities
and will save approximately $23,567 under our No Action baseline. We
calculate that approximately 2 percent of the small entities impacted
by this final rule will have a cost savings that is greater than 1
percent but less than 3 percent of their annual revenue. The other 98
percent will have a cost savings that is less than 1 percent of their
annual revenue.
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that
this final rule will not have a significant economic impact on a
substantial number of small entities.

C. Assistance for Small Entities

Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offer to assist small
entities in understanding this final rule so that they can better
evaluate its effects on them and participate in the rulemaking. The
Coast Guard will not retaliate against small entities that question or
complain about this rule or any policy or action of the Coast Guard.
Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).

D. Collection of Information

This rule calls for no new or revised collection of information
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism

A rule has implications for federalism under Executive Order 13132
(Federalism) if it has a substantial direct effect on States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this final rule under Executive Order
13132 and have determined that it is consistent with the fundamental
federalism principles and preemption requirements described in
Executive Order 13132. Our analysis follows.
This final rule delays the implementation of existing regulations
that create a risk-based set of security measures for MTSA-regulated
facilities. Based on this analysis, each facility is classified
according to its risk level, which then determines whether the facility
will be required to conduct electronic TWIC inspection. As this final
rule does not impose any new requirements, but simply delays the
implementation of existing requirements, it does not have a preemptive
impact. Please refer to the Coast Guard's federalism analysis in the
2016 TWIC Reader final rule (81 FR 57652, 57706, August 23, 2016) for
additional information.
While it is well settled that States may not regulate in categories
in which Congress intended the Coast Guard to be the sole source of a
vessel's obligations, States and local governments have traditionally
shared certain regulatory jurisdiction over waterfront facilities. MTSA
standards contained in 33 CFR part 105 (Maritime security: Facilities)
are not preemptive of State or local law or regulations that do not
conflict with them (that is, they would either conflict or would
frustrate an overriding Federal need for uniformity).
The Coast Guard recognizes the key role that State and local
governments may have in making regulatory determinations. Additionally,
for rules with federalism implications and preemptive effect, Executive
Order 13132 specifically directs agencies to consult with State and
local governments during the rulemaking process. If you believe this
Final Rule has implications for federalism under Executive Order 13132,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section of this preamble.

F. Unfunded Mandates

The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Although this final rule will not
result in such expenditure, we do discuss the effects of this final
rule elsewhere in this preamble.

G. Taking of Private Property

This final rule will not cause a taking of private property or
otherwise have taking implications under Executive Order 12630
(Governmental Actions and Interference with Constitutionally Protected
Property Rights).

H. Civil Justice Reform

This final rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988 (Civil Justice Reform) to minimize
litigation, eliminate ambiguity, and reduce burden.

I. Protection of Children

We have analyzed this final rule under Executive Order 13045
(Protection of Children from Environmental Health Risks and Safety
Risks). This final rule is not an economically significant rule and
will not create an environmental risk to

[[Page 86739]]

health or risk to safety that might disproportionately affect children.

J. Indian Tribal Governments

This final rule does not have tribal implications under Executive
Order 13175 (Consultation and Coordination with Indian Tribal
Governments), because it will not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

K. Energy Effects

We have analyzed this final rule under Executive Order 13211
(Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use). We have determined that it is not a
``significant energy action'' under Executive Order 13211, because
although it is a ``significant regulatory action'' under Executive
Order 12866, it is not likely to have a significant adverse effect on
the supply, distribution, or use of energy, and the Administrator of
OMB's Office of Information and Regulatory Affairs has not designated
it as a significant energy action.

L. Technical Standards

The National Technology Transfer and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies to use voluntary consensus
standards in their regulatory activities unless the agency provides
Congress, through OMB, with an explanation of why using these standards
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g.,
specifications of materials, performance, design, or operation; test
methods; sampling procedures; and related management systems practices)
that are developed or adopted by voluntary consensus standards bodies.
This final rule does not use technical standards. Therefore, we did
not consider the use of voluntary consensus standards.

M. Environment

We have analyzed this final rule under DHS Management Directive
023-01, Rev. 1, associated implementing instructions, and Environmental
Planning COMDTINST 5090.1 (series), which guide the Coast Guard in
complying with the National Environmental Policy Act of 1969 (42 U.S.C.
4321-4370f), and have made a determination that this action is one of a
category of actions that do not individually or cumulatively have a
significant effect on the human environment. A Record of Environmental
Consideration supporting this determination is available in the docket.
For instructions on locating the docket, see the ADDRESSES section of
this preamble. This final rule is categorically excluded under
paragraph L54 of Appendix A, Table 1 of DHS Instruction Manual 023-
01(series). Paragraph L54 pertains to regulations that are editorial or
procedural.

List of Subjects in 33 CFR Part 105

Maritime security, Navigation (water), Reporting and recordkeeping
requirements, Security measures, Waterways.

For the reasons listed in the preamble, the Coast Guard amends 33
CFR part 105 as follows:

PART 105--MARITIME SECURITY: FACILITIES

0
1. The authority citation for part 105 is revised to read as follows:

Authority: 46 U.S.C. 70034, 70103, 70116; sec. 811, Pub. L. 111-
281, 124 Stat. 2905 (46 U.S.C. 70103 note); 33 CFR 1.05-1, 6.04-11,
6.14, 6.16, and 6.19; DHS Delegation No. 00170.1, Revision No. 01.4.

0
2. In Sec. 105.253, revise paragraphs (a)(2) through (4) to read as
follows:

Sec. 105.253 Risk Group classifications for facilities.

(a) * * *
(2) Beginning May 8, 2029: Facilities that handle Certain Dangerous
Cargoes (CDC) in bulk and transfer such cargoes from or to a vessel.
(3) Beginning May 8, 2029: Facilities that handle CDC in bulk, but
do not transfer it from or to a vessel.
(4) Beginning May 8, 2029: Facilities that receive vessels carrying
CDC in bulk but, during the vessel-to-facility interface, do not
transfer it from or to the vessel.
* * * * *

Dated: October 17, 2024.
Linda L. Fagan,
Admiral, U.S. Coast Guard, Commandant.
[FR Doc. 2024-24780 Filed 10-30-24; 8:45 am]
BILLING CODE 9110-04-P

</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on October 31, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.